The total resource-envelope required to meet the capital and recurrent expenditure programmes of the Government for the 2012 fiscal year is $793.9 million.{{more}}

And according to Prime Minister Dr Ralph Gonsalves in his debate presentation yesterday, that expenditure is made up of recurrent expenditure, inclusive of Amortization and Sinking Fund contributions, $528.7 million and capital expenditure of $184.9 million.

He said in the 2012 budget, careful attention has been paid to restrain the growth in recurrent expenditure, whilst maintaining a resonable level of investment spending.

In this regard, the recurrent budget remains relatively stable, registering a marginal decline of 0.1 per cent or $0.82 million when compared with the 2011 recurrent estimates, even as expenditure on the public sector investment programme is budgeted to increase by 4.7 per cent.

The prime minister further contended in his address that as a consequence of the protracted global economic crisis and its impact on the revenue performance in 2011 and the projections for 2012, there is a $21.3 million deficit on the current account.

âFinancing for the current account deficit and the capital programme will be raised from grants and concessionary loans,â Gonsalves explained.

The total financing requirements for the 2012 budget according to the prime minister amounted to $286.6 million and are made up of $21.4 million under the current account deficit; $80.3 million amortization and $184.9 million capital expenditure.

Gonsalves further explained that the funds required to finance these requirements will be raised from the sale of assets and from a number of bilateral and multilateral sources.